Executor/Beneficiary transferring property into children's name

Garnachko

hello - after some urgent advice plse - can an executor who is also a beneficiary transfer their share to 3rd party before the estate has been shared amongst all beneficiaries? Background is my sister and i were joint beneficiaries of our late mother's estates; sis transferred land registry title deeds into her name and has now transferred  registrtaion/title deeds to her children so they are named as owners in the land registry; I am not named as having an interest in the property in the title deeds. i am aware first transfer is unusual, the executor only owns the assess in trust for the beneficiaries - but then how can she legitimately transfer onto 3rd party without informing all beneficiaries and my agreeing to this 2nd transfer ???
x

p00hsticks

I'd say it's not the subsequent transfer that would be the main concern,  it's (potentially) the initial one.
 
I think you need to take a step back in your explanation.
You say that you and your sister were joint beneficiaries of your late mothers estate. 

Did the will specifically leave the property to either one of you, or to both of you jointly, or simply say that the estate as a whole should be divided equally between you ?  

What else other than the property did the estate consist of ? 

How did you and your sister agree that the estate should be divided up ? 

If you agreed to both retain joint and equal ownership of the property, then it should have been put into both names to start with.
Or did you agree that your sister could take the house as (part of?) her share of the estate and you would receive a corresponding value from other sources (savings, etc) 

Garnachko

P00hsticks many thanks for this reply, and yes there is more detail that might help in giving you the bigger picture. there are no other assets apart from 3 properties - 2 in UK and 1 overseas.
the UK will stated that the 2 properties should be divided equally between the 2 of us. We agreed that i would have ownership of the overseas property and this would be shared 50/50 between us. I have recently arranged valuations for the UK properties  with a view to selling and sharing proceeds 50-50; however recently my sister informed me use wants to use sale proceeds from overseas property (say property C) to purchase the other 2, say properties A and B in UK (although this would still leave a shortfall which she would need to find); whilst I am happy to sell her my share of 1 of the properties (property A, our family home); i did not agree to her purchasing the property B and this was something I was considering keeping subject to valuations - the 3rd property (which is also overseas so more complicated)  we both agree to sell. I guess where we seem to have disagreed is that she wants to sell the overseas property first, (C)  release some cash and then purchase my share out of the 2 remaining properties in UK. Whereas my preferred option is to distribute the 2 properties first - her taking 1, me taking the other and market the 3rd property rather than do a quick fire sale on the 3rd property. 
However not withstanding any of the above, i guess the issue is also whether she can transfer UK title deeds into her own name, without declaring i have an interest and now subsequently pass on to her children. What is her motive in doing this? 

RAS

Who is the executor?

Garnachko

Hi RAS sister applied for probate and is executor - with power reserved to me 

p00hsticks

I'm sorry, it;s probably me, but it's still not making much sense to me.

Luba13 said:

the UK will stated that the 2 properties should be divided equally between the 2 of us.

Did that mean you were to both jointly own both properties, you were to each inherit one or that both were to be sold and the proceeds split between you ? Were the individual properties specifically mentioned in the will (always dangerous, because if one was then sold between making the will and the death, the bequest would fail). 

Garnachko said:

We agreed that i would have ownership of the overseas property and this would be shared 50/50 between us.

?? This seems contradictory ? Either you have ownership or it's shared 50/50 ? Which is it ?

Who is actually executor of the UK will ?

From what you describe it sounds as if your sister may have acted prematurely in getting the deeds of one property transferred into her name, but it's also not clear if you necessarily should have an interest in it unless the property is worth more than half the total value of the estate. Is this property A (which you say you are happy to let her have) or property B (which you say you may want yourself) ?.   

It all sounds to me as if neither of you have a really clear agreed idea of what is to happen to all three properties at present, so when you get the whole estate valued and both agree on the valuations of the individual properties, you then need to sit down together and discuss once more how it should be divided up so you both end up with equal shares (although you sister transferring one property into her name prior to this apparently happening has rather muddied the waters). 

JGB1955

Once your sister transferred the property into her name it was up to her what to do with it next.  HOWEVER I would be (more than) upset that she had taken it upon herself to deal with only part of the estate (to her benefit), ignoring the other beneficiary - yourself.  As to her motive - only she can answer that one.  It's a shame that you reserved your power but guess you trust(ed) your sister totally. Perhaps ask her for the house valuations at probate and work from there?

Garnachko

p00hsticks 
Some further clarifications, (it is complicated but i think trying to write this down  is helping me understand what the issues are

1. The will did not name any properties - we were both declared as joint beneficiaries - so nothing about selling/retaining 
2. Regarding overseas property C- i have ownership but i have agreed to share 50/50 upon sale - the sale of this property is something we do agree on !
3. My sister is executor with power reserved to me
4. She transferred both UK properties into her name - and has now transferred again to her children - all without informing me
5. We have valued all 3 properties; we are agreed on selling overseas property C and sharing 50/50 between us, we are agreed that she purchases my 50% share of property A, we are NOT agreed on who purchases property B (we both want this property), and further we are not agreed that property C needs selling prior to settling A and B properties in UK

Let me know if any further details required

Brie

Sounds like she's taking advantage at the same time as ruining her children's chances of getting any first time buyer benefits.  Frankly it doesn't sound like she knows what she's actually doing.

Have you told her that she has acted rashly?

RAS

Was the overseas property in the ownership of your mother when she died?

If so, was there a will in that country and how has that been handled (probate equivalent).

What is the approximate value of the estate? Was there any IHT to pay?

Was your mother still married to your father when he died?

p00hsticks

This all sounds as if it's happened in the wrong order. 

What should have happened is that all three properties should have been properly valued, the value of the estate in each country worked out and then probate applied for. Only once probate has been obtained could the UK properties be sold or the deeds transferred into a different name, so it must be past that point. 

Which leads to the question - what valuations were used on the probate application, if you are only getting valuations now ?   

Where assets such as property and valuables such as jewelllery are invovled that aren't specifically left to any one individual in the will, it's really up to the executor (ideally with the agreement of the beneficiaries)  as to who gets what to make up their proportion of their bequests.